CANADIAN PACIFIC KANSAS CITY LTD/CN
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 29, 2026
CP$92.17-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0000016875-26-000026
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0000016875-26-000033
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 235 previous paragraphs and 259 current paragraphs.
124 unchanged; 99 reworded; 33 added; 7 removed; 5 previous and 3 current paragraphs rearranged.
Tables are not compared: 31 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
Third Quarter of 2026 Results
Current report
•Core adjusted diluted EPS was $1.28, an increase of 16% compared to $1.10 in 2025.
Current report
•higher incentive compensation;
Current report
•the unfavourable impact of the change in FX rates of $13 million.
Current report
•higher incentive compensation; and
Current report
•the unfavourable impact of the change in FX rates of $19 million.
Current report
•the unfavourable impact of the change in FX rates of $13 million.
Current report
•the unfavourable impact of the change in FX rates of $19 million.
Current report
The decrease in Equipment rents expense in the first nine months of 2026 was primarily due to improved cycle times, which reduced car hire costs and the impact of lower car hire rates for pooled and foreign freight cars used by the Company. This decrease was partially offset by higher expenses related to leased freight cars and higher usage of pooled intermodal platforms by the Company.
Current report
•higher property taxes;
Current report
•the unfavourable impact of the change in FX rates of $11 million;
Current report
•higher track repairs; and
Current report
•higher expenses due to environmental and weather-related events.
Current report
•the impact of cost inflation;
Current report
•higher expenses due to environmental and weather-related events; and
Current report
•higher property taxes.
Current report
Income tax expense was $448 million in the third quarter of 2026, an increase of $152 million or 51%, from $296 million in the same period of 2025. The increase was primarily due to:
Current report
•a $94 million Canada Revenue Agency ("CRA") reassessment of prior year taxes related to the Kansas City Southern ("KCS") acquisition;
Current report
•higher taxable earnings; and
Current report
•a $17 million tax settlement with the Servicio de Administracion Tributaria ("SAT").
Current report
Income tax expense was $1,058 million in the first nine months of 2026, an increase of $113 million or 12%, from $945 million in the same period of 2025. The increase was primarily due to:
Current report
•a $94 million CRA reassessment of prior year taxes related to the KCS acquisition;
Current report
•higher taxable earnings; and
Current report
•a $17 million tax settlement with the SAT.
Current report
Net cash used in investing activities decreased $302 million in the third quarter of 2026, compared to the same period in 2025. This decrease was primarily due to lower additions to properties of $247 million and higher proceeds from the sale of property of $21 million.
Current report
Net cash used in financing activities increased $161 million in the third quarter of 2026, compared to the same period in 2025. The increase was primarily due to lower net issuances of commercial paper of $510 million compared to the same period in 2025, partially offset by lower share repurchases of $380 million.
Current report
–in the third quarter, acquisition-related costs of $12 million ($9 million after current income tax recovery of $3 million) including $3 million recognized in "Compensation and benefits", and $9 million recognized in "Purchased services and other", that unfavourably impacted Diluted EPS by 1 cent;
Current report
–in the third quarter, advisory costs of $17 million ($13 million after current income tax recovery of $4 million) recognized in "Purchased services and other", that unfavourably impacted Diluted EPS by 2 cents;
Current report
•in the third quarter, an income tax expense of $94 million (deferred income tax expense of $98 million net of a current income tax recovery of $4 million) related to a reassessment of prior year taxes by the CRA in connection with the KCS acquisition that unfavourably impacted Diluted EPS by 11 cents; and
Current report
•in the third quarter, an income tax expense of $17 million (current income tax expense of $20 million net of a deferred income tax recovery of $3 million) related to a tax settlement with the SAT that unfavourably impacted Diluted EPS by 2 cents.
Current report
–in the third quarter, acquisition-related costs of $13 million ($10 million after current income tax recovery of $3 million) including $4 million recognized in "Compensation and benefits", and $9 million recognized in "Purchased services and other", that unfavourably impacted Diluted EPS by 1 cent;
Current report
–in the third quarter, KCS purchase accounting of $94 million ($69 million after deferred income tax recovery of $25 million), including costs of $91 million recognized in "Depreciation and amortization", $1 million recognized in "Purchased services and other", $4 million recognized in "Net interest expense", and a recovery of $2 million recognized in "Net loss attributable to non-controlling interest", that unfavourably impacted Diluted EPS by 8 cents;
Current report
–in the third quarter, KCS purchase accounting of $95 million ($69 million after deferred income tax recovery of $26 million), including costs of $90 million recognized in "Depreciation and amortization", $1 million recognized in "Purchased services and other", $6 million recognized in "Net interest expense", and a recovery of $2 million recognized in "Net loss attributable to non-controlling interest", that unfavourably impacted Diluted EPS by 8 cents;
Removed paragraphs (7)
Previous report
Second Quarter of 2026 Results
Previous report
•Core adjusted diluted EPS was $1.27, an increase of 13% compared to $1.12 in 2025.
Previous report
Energy, chemicals and plastics revenue was relatively flat in the first six months of 2026 primarily due to higher fuel surcharge revenue, higher freight rates, and higher volumes of crude, offset by lower volumes of fuel oil and liquefied petroleum gas and the unfavourable impact of the change in FX rates. Carloads decreased while RTMs remained flat due to moving lower volumes of fuel oil within Mexico and from the southern U.S. to Mexico, which have shorter lengths of haul, and moving higher volumes of crude, which has a longer length of haul.
Previous report
•the unfavourable impact of the change in FX of $10 million.
Previous report
•the unfavourable impact of the change in FX of $10 million.
Previous report
The decrease in Equipment rents expense in the first six months of 2026 was primarily due to the lower use of other railways' freight cars due to improved cycle times.
Previous report
Net cash used in financing activities increased $130 million in the second quarter of 2026, compared to the same period in 2025. The increase was primarily due to net proceeds from debt issuances of $1,392 million in the second quarter of 2025 and higher principal repayments on long-term debt driven by repayment of the U.S. $250 million ($345 million) 3.125% 10-year notes at maturity in the second quarter of 2026. This increase was partially offset by net issuance of commercial paper of $778 million in the second quarter of 2026 compared to net repayments of $722 million in the same period of 2025, and lower share repurchases of $110 million.
Reworded paragraphs (99)
Previous wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to enhance a reader’s understanding of the Company’s results of operations and financial condition. The MD&A is provided as a supplement to, and should be read in conjunction with, the Company's Interim Consolidated Financial Statements and the related notes as at and for the three and six months ended June 30, 2026 in Item 1. Financial Statements, other information in this report, and Item 8. Financial Statements and Supplementary Data of the Company's 2025 Annual Report on Form 10-K. Except where otherwise indicated, all financial information reflected herein is expressed in Canadian dollars.
Current wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to enhance a reader’s understanding of the Company’s results of operations and financial condition. The MD&A is provided as a supplement to, and should be read in conjunction with, the Company's Interim Consolidated Financial Statements and the related notes as at and for the three and nine months ended September 30, 2026 in Item 1. Financial Statements, other information in this report, and Item 8. Financial Statements and Supplementary Data of the Company's 2025 Annual Report on Form 10-K. Except where otherwise indicated, all financial information reflected herein is expressed in Canadian dollars.
Previous wording
•Total revenues were $4,164 million, an increase of 13% compared to $3,699 million in 2025.
Current wording
•Total revenues were $4,219 million, an increase of 15% compared to $3,661 million in 2025.
Previous wording
•Diluted earnings per share ("EPS") was $1.15, a decrease of 14% compared to $1.33 in 2025.
Current wording
•Diluted earnings per share ("EPS") was $1.04, an increase of 3% compared to $1.01 in 2025.
Previous wording
•Operating ratio was 64.6%, a 90 basis point increase from 63.7% in 2025.
Current wording
•Operating ratio was 64.8%, a 130 basis point increase from 63.5% in 2025.
Previous wording
•Core adjusted operating ratio was 61.6%, a 90 basis point increase from 60.7% in 2025.
Current wording
•Core adjusted operating ratio was 61.9%, a 120 basis point increase from 60.7% in 2025.
Previous wording
AGTM is defined as the movement of one ton of train weight over one mile. GTMs are calculated by multiplying total train weight by the distance the train moved. Total train weight comprises the weight of the freight cars, their contents, and any inactive locomotives. An increase in GTMs indicates additional workload. The increase in GTMs in the second quarter of 2026 was primarily due to higher volumes of Grain, Energy, chemicals and plastics, and Metals, minerals and consumer products, partially offset by lower volumes of Coal.
Current wording
AGTM is defined as the movement of one ton of train weight over one mile. GTMs are calculated by multiplying total train weight by the distance the train moved. Total train weight comprises the weight of the freight cars, their contents, and any inactive locomotives. An increase in GTMs indicates additional workload. The increase in GTMs in the third quarter of 2026 was primarily due to higher volumes of Grain, Intermodal, and Metals, minerals and consumer products, partially offset by lower volumes of Coal and Potash.
Previous wording
The increase in GTMs in the first six months of 2026 was primarily due to higher volumes of Grain, crude, and Metals, minerals and consumer products, partially offset by lower volumes of Coal and Energy, chemicals and plastics, excluding crude.
Current wording
The increase in GTMs in the first nine months of 2026 was primarily due to higher volumes of Grain, Intermodal, Metals, minerals and consumer products, and crude, partially offset by lower volumes of Coal, Energy, chemicals and plastics, excluding crude, and Potash.
Previous wording
Train miles are defined as the sum of the distance moved by all trains operated on the network. Train miles provide a measure of the productive utilization of our network. A smaller increase in train miles relative to increases in volumes, as measured by Revenue ton-miles ("RTMs"), and/or workload, as measured by GTMs, indicates improved train productivity. The increase in train miles in the second quarter of 2026 reflected the impact of a 6% increase in workload (GTMs), partially offset by a 1% increase in average train weights, which was primarily due to an improvement in operating plan efficiency.
Current wording
Train miles are defined as the sum of the distance moved by all trains operated on the network. Train miles provide a measure of the productive utilization of our network. A smaller increase in train miles relative to increases in volumes, as measured by Revenue ton-miles ("RTMs"), and/or workload, as measured by GTMs, indicates improved train productivity. The increase in train miles in the third quarter of 2026 reflected the impact of a 7% increase in workload (GTMs).
Previous wording
The increase in train miles in the first six months of 2026 reflected the impact of a 4% increase in workload (GTMs), partially offset by a 2% increase in average train weights, which was primarily due to an improvement in operating plan efficiency.
Current wording
The increase in train miles in the first nine months of 2026 reflected the impact of a 5% increase in workload (GTMs), partially offset by a 1% increase in average train weights, which was primarily due to an improvement in operating plan efficiency.
Previous wording
Fuel efficiency is defined as United States ("U.S.") gallons of locomotive fuel consumed per 1,000 GTMs. Fuel consumed includes gallons from freight, yard and commuter service but excludes fuel used in capital projects and other non-freight activities. An improvement in fuel efficiency indicates operational cost savings. The improvements in Fuel efficiency in the second quarter and in the first six months of 2026 were due to the improvements in locomotive productivity as measured by GTMs / operating horsepower.
Current wording
Fuel efficiency is defined as United States ("U.S.") gallons of locomotive fuel consumed per 1,000 GTMs. Fuel consumed includes gallons from freight, yard and commuter service but excludes fuel used in capital projects and other non-freight activities. An improvement in fuel efficiency indicates operational cost savings. The improvements in Fuel efficiency in the third quarter and in the first nine months of 2026 were due to the improvements in locomotive productivity as measured by GTMs / operating horsepower.
Previous wording
Anemployee is defined as an individual currently engaged in full-time, part-time, or seasonal employment with the Company. The Company monitors employment and workforce levels in order to efficiently meet service and strategic requirements. The number of employees is a key driver of total compensation and benefits costs. The decreases in the average number of total employees in the second quarter and in the first six months of 2026 were primarily due to the completion of systems integrationin 2025 and efficient resource planning.
Current wording
Anemployee is defined as an individual currently engaged in full-time, part-time, or seasonal employment with the Company. The Company monitors employment and workforce levels in order to efficiently meet service and strategic requirements. The number of employees is a key driver of total compensation and benefits costs. The decreases in the average number of total employees in the third quarter and in the first nine months of 2026 were primarily due to the completion of systems integrationin 2025 and efficient resource planning.
Previous wording
The following table presents selected financial data related to the Company’s financial results for the three and six months ended June 30, 2026 and the comparative periods in 2025:
Current wording
The following table presents selected financial data related to the Company’s financial results for the three and nine months ended September 30, 2026 and the comparative periods in 2025:
Previous wording
The increase in Freight revenues in the second quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes as measured by RTMs. The increase in Non-freight revenues was primarily due to higher revenues from logistical services and subsurface fibre optic agreements.
Current wording
The increase in Freight revenues in the third quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes as measured by RTMs. The increase in Non-freight revenues was primarily due to higher revenues from subsurface agreements and passenger service operators.
Previous wording
RTMs are defined as the movement of one revenue-producing ton of freight over a distance of one mile. RTMs measure the relative weight and distance of rail freight moved by the Company. The increase in RTMs in the second quarter of 2026 was primarily due to higher volumes of Grain, Energy, chemicals and plastics, and Metals, minerals and consumer products, partially offset by lower volumes of Coal.
Current wording
RTMs are defined as the movement of one revenue-producing ton of freight over a distance of one mile. RTMs measure the relative weight and distance of rail freight moved by the Company. The increase in RTMs in the third quarter of 2026 was primarily due to higher volumes of Grain, Intermodal, and Metals, minerals and consumer products, partially offset by lower volumes of Coal and Potash.
Previous wording
Freight revenue per RTM is defined as freight revenue per revenue-producing ton of freight over a distance of one mile. This is an indicator of yield. The increase in freight revenue per RTM in the second quarter of 2026 was primarily due to the favourable impact of higher fuel prices on fuel surcharge revenue of $257 million, higher freight rates, and the favourable impact of the change in foreign exchange ("FX") rates of $21 million.
Current wording
Freight revenue per RTM is defined as freight revenue per revenue-producing ton of freight over a distance of one mile. This is an indicator of yield. The increase in freight revenue per RTM in the third quarter of 2026 was primarily due to the favourable impact of higher fuel prices on fuel surcharge revenue of $244 million, higher freight rates, and the favourable impact of the change in foreign exchange ("FX") rates of $65 million.
Previous wording
The increase in Freight revenues in the first six months of 2026 was primarily due to higher volumes as measured by RTMs and an increase in freight revenue per RTM. The increase in Non-freight revenues was primarily due to higher revenues from subsurface fibre optic agreements.
Current wording
The increase in Freight revenues in the first nine months of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes as measured by RTMs. The increase in Non-freight revenues was primarily due to higher revenues from subsurface agreements.
Previous wording
The increase in RTMs in the first six months of 2026 was primarily due to higher volumes of Grain, crude, and Metals, minerals and consumer products, partially offset by lower volumes of Coal and Energy, chemicals and plastics, excluding crude.
Current wording
The increase in RTMs in the first nine months of 2026 was primarily due to higher volumes of Grain, Intermodal, Metals, minerals and consumer products, and crude, partially offset by lower volumes of Coal, Energy, chemicals and plastics, excluding crude, and Potash.
Previous wording
Freight revenue per RTM in the first six months of 2026 increased primarily due to the favourable impact of higher fuel prices on fuel surcharge revenue of $217 million and higher freight rates, partially offset by the unfavourable impact of the change in FX rates of $60 million.
Current wording
Freight revenue per RTM in the first nine months of 2026 increased primarily due to the favourable impact of higher fuel prices on fuel surcharge revenue of $461 million, higher freight rates, and the favourable impact of the change in FX rates of $5 million.
Previous wording
Freight revenues include fuel surcharge revenues associated with the Company's fuel cost adjustment program, which is designed to respond to fluctuations in fuel prices and reduce exposure to changes in fuel prices. The surcharge is applied to shippers through tariffs and by contract, within agreed-upon guidelines. This program includes recoveries of carbon taxes, levies, and obligations under cap-and-trade programs. Freight revenues included fuel surcharge revenues of $608 million in the second quarter of 2026, an increase of $258 million, or 74%, from $350 million in the same period of 2025. This increase was primarily due to higher fuel prices and the favourable impact of the change in FX rates, partially offset by the unfavourable impact from the timing of recoveries under the Company's fuel cost adjustment program.
Current wording
Freight revenues include fuel surcharge revenues associated with the Company's fuel cost adjustment program, which is designed to respond to fluctuations in fuel prices and reduce exposure to changes in fuel prices. The surcharge is applied to shippers through tariffs and by contract, within agreed-upon guidelines. This program includes recoveries of carbon taxes, levies, and obligations under cap-and-trade programs. Freight revenues included fuel surcharge revenues of $629 million in the third quarter of 2026, an increase of $271 million, or 76%, from $358 million in the same period of 2025. This increase was primarily due to higher fuel prices, higher volumes, and the favourable impact of the change in FX rates, partially offset by the unfavourable impact from the timing of recoveries under the Company's fuel cost adjustment program.
Previous wording
In the first six months of 2026, fuel surcharge revenues were$960 million, an increase of $208 million, or 28%, from $752 million in the same period of 2025. This increase was primarily due to higher fuel prices, partially offset by the unfavourable impact from the timing of recoveries under the Company's fuel cost adjustment program and lower carbon levy surcharge revenue due to the elimination of the Canadian federal carbon tax program effective April 1, 2025.
Current wording
In the first nine months of 2026, fuel surcharge revenues were$1,589 million, an increase of $479 million, or 43%, from $1,110 million in the same period of 2025. This increase was primarily due to higher fuel prices, higher volumes, and the favourable impact of the change in FX rates, partially offset by the unfavourable impact from the timing of recoveries under the Company's fuel cost adjustment program and lower carbon levy surcharge revenue due to the elimination of the Canadian federal carbon tax program effective April 1, 2025.
Previous wording
The increase in Grain revenue in the second quarter of 2026 was primarily due to higher volumes of Canadian grain to Vancouver, British Columbia ("B.C."), Mexico, eastern Canada, and the U.S. Midwest, higher volumes of U.S. grain to Mexico and the U.S. Pacific Northwest, and an increase in freight revenue per RTM due to higher fuel surcharge revenue and higher freight rates.
Current wording
The increase in Grain revenue in the third quarter of 2026 was primarily due to higher volumes of Canadian grain to Vancouver, British Columbia ("B.C."), Mexico, and Thunder Bay, Ontario, higher volumes of U.S. grain to Mexico and the U.S. Pacific Northwest, and an increase in freight revenue per RTM due to higher fuel surcharge revenue, the favourable impact of the change in FX rates, and higher freight rates. RTMs increased more than carloads due to moving higher volumes of Grain to Mexico, which has a longer length of haul.
Previous wording
The increase in Grain revenue in the first six months of 2026 was primarily due to higher volumes of Canadian grain to Vancouver, eastern Canada, Mexico, and the U.S. Midwest, higher volumes of U.S. grain to Mexico and the U.S. Pacific Northwest, and an increase in freight revenue per RTM. Freight revenue per RTM increased due to higher freight rates and higher fuel surcharge revenue, partially offset by the unfavourable impact of the change in FX rates.
Current wording
The increase in Grain revenue in the first nine months of 2026 was primarily due to higher volumes of Canadian grain to Vancouver, Mexico, eastern Canada, and the U.S. Midwest, higher volumes of U.S. grain to Mexico and the U.S. Pacific Northwest, and an increase in freight revenue per RTM due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates.
Previous wording
The decrease in Coal revenue in the first six months of 2026 was primarily due to lower volumes of Canadian coal to Vancouver, Kamloops, and Thunder Bay due to lower production and maintenance at both the mines and at the ports, as well as lower volumes of U.S. coal, partially offset by an increase in freight revenue per RTM. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates. RTMs decreased more than carloads due to moving proportionately lower volumes of Canadian coal, which has a longer length of haul.
Current wording
Coal revenue was relatively flat in the third quarter of 2026 primarily due to lower volumes of Canadian coal to Kamloops, B.C. and Vancouver, as well as lower volumes of U.S. coal, offset by an increase in freight revenue per RTM due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates. RTMs decreased more than carloads due to moving proportionately lower volumes of Canadian coal, which has a longer length of haul.
Previous wording
The decrease in Coal revenue in the second quarter of 2026 was primarily due to lower volumes of Canadian coal to Vancouver, Kamloops, B.C., and Thunder Bay, Ontario due to lower production and maintenance at both the mines and the ports, as well as lower volumes of U.S. coal, partially offset by an increase in freight revenue per RTM due to higher fuel surcharge revenue and higher freight rates. RTMs decreased more than carloads due to moving proportionately lower volumes of Canadian coal, which has a longer length of haul.
Current wording
The decrease in Coal revenue in the first nine months of 2026 was primarily due to lower volumes of Canadian coal to Kamloops, Vancouver, and Thunder Bay due to lower production and maintenance at both the mines and the ports, as well as lower volumes of U.S. coal, partially offset by an increase in freight revenue per RTM due to higher fuel surcharge revenue and higher freight rates. RTMs decreased more than carloads due to moving proportionately lower volumes of Canadian coal, which has a longer length of haul.
Previous wording
The increase in Potash revenue in the second quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of export potash to Kansas City, Missouri, partially offset by lower volumes of export potash to the U.S. Pacific Northwest and Chicago, Illinois. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates.
Current wording
The increase in Potash revenue in the third quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of export potash to Kansas City, Missouri, Chicago, Illinois, and Kamloops, partially offset by lower volumes of export potash to the U.S. Pacific Northwest and Vancouver and lower volumes of domestic potash. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates.
Previous wording
The increase in Potash revenue in the first six months of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of export potash to Kansas City and Kamloops, partially offset by lower volumes of export potash to the U.S. Pacific Northwest and Vancouver and lower volumes of domestic potash. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates.
Current wording
The increase in Potash revenue in the first nine months of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of export potash to Kansas City and Kamloops, partially offset by lower volumes of export potash to the U.S. Pacific Northwest and Vancouver and lower volumes of domestic potash. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates.
Previous wording
The increase in Fertilizers and sulphur revenue in the second quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of dry and wet fertilizers, partially offset by lower volumes of sulphur. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates.
Current wording
The increase in Fertilizers and sulphur revenue in the third quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of dry fertilizers, partially offset by lower volumes of sulphur and wet fertilizers. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates. RTMs decreased more than carloads due to moving lower volumes of sulphur from Alberta to Chicago, which has a longer length of haul, and higher volumes of dry fertilizers within Alberta, which has a shorter length of haul.
Previous wording
The increase in Fertilizers and sulphur revenue in the first six months of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of dry and wet fertilizers, partially offset by lower volumes of sulphur. Freight revenue per RTM increased due to higher freight rates and higher fuel surcharge revenue, partially offset by the unfavourable impact of the change in FX rates.
Current wording
The increase in Fertilizers and sulphur revenue in the first nine months of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of dry fertilizers, partially offset by lower volumes of sulphur. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates. RTMs decreased while carloads increased due to moving lower volumes of sulphur from Alberta to Chicago, which has a longer length of haul, and higher volumes of dry fertilizers within Alberta, which has a shorter length of haul.
Previous wording
The increase in Forest products revenue in the second quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of printing papers and paperboard, partially offset by lower volumes of wood pulp and newsprint. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates. Carloads decreased more than RTMs due to moving lower volumes of paperboard from Mississippi to Texas and from Louisiana to the U.S. Midwest, which have shorter lengths of haul.
Current wording
The increase in Forest products revenue in the third quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of printing papers, wood pulp, and logs and poles, partially offset by lower volumes of paperboard. Freight revenue per RTM increased due to higher fuel surcharge revenue, the favourable impact of the change in FX rates, and higher freight rates.
Previous wording
The decrease in Forest products revenue in the first six months of 2026 was primarily due to lower volumesof wood pulp, newsprint, and paperboard and adecrease in freight revenue per RTM. Freight revenue per RTM decreased due to the unfavourable impact of the change in FX rates, partially offset by higher fuel surcharge revenue and higher freight rates. Carloads decreased more than RTMs due to moving lower volumes of paperboard from Louisiana to the U.S. Midwest, which has a shorter length of haul.
Current wording
The decrease in Forest products revenue in the first nine months of 2026 was primarily due to lower volumesof wood pulp, paperboard, and newsprint, partially offset by higher volumes of printing papers and an increase in freight revenue per RTM. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates. Carloads decreased more than RTMs due to moving lower volumes of paperboard from Louisiana to the U.S. Midwest, which has a shorter length of haul.
Previous wording
The increase in Energy, chemicals and plastics revenue in the second quarter of 2026 was primarily due to higher volumes of crude, styrene, and asphalt and an increase in freight revenue per RTM, partially offset by lower volumes of fuel oil. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates. RTMs increased while carloads decreased due to moving higher volumes of crude, which has a longer length of haul, and moving lower volumes of fuel oil from the southern U.S. to Mexico and within Mexico, which have shorter lengths of haul.
Current wording
The increase in Energy, chemicals and plastics revenue in the third quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of liquefied petroleum gas, partially offset by lower volumes of crude. Freight revenue per RTM increased due to higher fuel surcharge revenue, the favourable impact of the change in FX rates, and higher freight rates.
Previous wording
The increase in Metals, minerals and consumer products revenue in the second quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of steel and sand and stone. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates.
Current wording
The increase in Metals, minerals and consumer products revenue in the third quarter of 2026 was primarily due to higher volumes of steel and aluminum and an increase in freight revenue per RTM due to higher fuel surcharge revenue, the favourable impact of the change in FX rates, and higher freight rates.
Previous wording
The increase in Metals, minerals and consumer products revenue in the first six months of 2026 was primarily due to higher volumes of sand and stone and steel and an increase in freight revenue per RTM due to higher freight rates and higher fuel surcharge revenue. RTMs increased while carloads remained flat due to moving higher volumes of sand and stone from Wisconsin to Mexico, which has a longer length of haul.
Current wording
The increase in Metals, minerals and consumer products revenue in the first nine months of 2026 was primarily due to higher volumes of steel, sand and stone, and aluminum and an increase in freight revenue per RTM due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates. RTMs increased more than carloads due to moving higher volumes of sand and stone from Wisconsin to Mexico, which has a longer length of haul.
Previous wording
The increase in Automotive revenue in the second quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes from Mexico to Canada, from Vancouver to eastern Canada, and from Ontario to Mexico, partially offset by lower volumes from the U.S. Midwest. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates. RTMs increased more than carloads due to moving higher volumes from Mexico to Canada, from Vancouver to eastern Canada, and from Ontario to Mexico, which have longer lengths of haul.
Current wording
The increase in Automotive revenue in the third quarter of 2026 was primarily due to an increase in freight revenue per RTM, partially offset by lower volumes from the U.S. Midwest and Mexico. Freight revenue per RTM increased due to higher fuel surcharge revenue, the favourable impact of the change in FX rates, and higher freight rates.
Previous wording
The increase in Automotive revenue in the first six months of 2026 was primarily due to higher volumes from Mexico to Canada, and an increase in freight revenue per RTM, partially offset by lower volumes from the U.S. Midwest. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates. RTMs increased while carloads decreased due to moving higher volumes from Mexico to Canada, which has a longer length of haul, and moving lower volumes from Ontario to Chicago and New York, which have shorter lengths of haul.
Current wording
The increase in Automotive revenue in the first nine months of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes from Mexico to Canada, partially offset by lower volumes from the U.S. Midwest. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates. Carloads decreased while RTMs increased due to moving lower volumes from Ontario to Chicago and New York, which have shorter lengths of haul, and moving higher volumes from Mexico to Canada, which has a longer length of haul.
Previous wording
The increase in Intermodal revenue in the second quarter of 2026 was primarily due to an increase in freight revenue per RTM and higher domestic intermodal wholesale and cross-border volumes, partially offset by lower international intermodal volumes to and from the Port of Vancouver and the Port of Saint John. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates.
Current wording
The increase in Intermodal revenue in the third quarter of 2026 was primarily due to an increase in freight revenue per RTM, higher international intermodal volumes to and from the Port of Vancouver and the Port of Montréal, and higher domestic intermodal wholesale volumes, partially offset by lower international intermodal volumes to and from the Port of Saint John. Freight revenue per RTM increased due to higher fuel surcharge revenue, higher freight rates, and the favourable impact of the change in FX rates.
Previous wording
The increase in Intermodal revenue in the first six months of 2026 was primarily due to an increase in freight revenue per RTM, higher international intermodal volumes to and from the Port of Vancouver, and higher domestic intermodal wholesale volumes, partially offset by lower international intermodal volumes to and from the Port of Saint John and the Port of Montréal. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates. RTMs increased while carloads decreased due to moving higher international intermodal volumes to and from the Port of Vancouver, which has a longer length of haul, and moving lower international intermodal volumes to and from the Port of Saint John and the Port of Montréal, which have shorter lengths of haul.
Current wording
The increase in Intermodal revenue in the first nine months of 2026 was primarily due to an increase in freight revenue per RTM, higher international intermodal volumes to and from the Port of Vancouver, and higher domestic intermodal wholesale volumes, partially offset by lower international intermodal volumes to and from the Port of Saint John. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates.
Previous wording
Compensation and benefits expense includes employee wages, salaries, fringe benefits, and stock-based compensation. The increase in Compensation and benefits expense in the second quarter of 2026 was primarily due to:
Current wording
Compensation and benefits expense includes employee wages, salaries, fringe benefits, and stock-based compensation. The increase in Compensation and benefits expense in the third quarter of 2026 was primarily due to:
Previous wording
•increased stock-based compensation expense of $51 million, primarily due to changes in payout rates and changes in the Common Share price;
Current wording
•increased stock-based compensation expense of $35 million, primarily due to changes in payout rates and in the Common Share price;
Previous wording
This increase was partially offset by efficiencies gained by a reduction in headcount due to the completion of systems integration in 2025 and efficient resource planning, including the impacts of increased train weights.
Current wording
This increase was partially offset by efficient resource planning and efficiencies gained by a reduction in headcount due to the completion of systems integration in 2025.
Showing the first 40 of 99 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The increase in Energy, chemicals and plastics revenue in the first nine months of 2026 was primarily due to an increase in freight revenue per RTM and higher volumes of crude, partially offset by lower volumes of fuel oil. Freight revenue per RTM increased due to higher fuel surcharge revenue and higher freight rates, partially offset by the unfavourable impact of the change in FX rates.
Current report — wording carried from elsewhere
The increase in Materials expense in the first nine months of 2026 was primarily due to cost inflation and increased locomotive maintenance. This increase was partially offset by reduced safety material costs.
Current report — wording carried from elsewhere
On October 6, 2026, the Company issued $500 million 4.20% 3.5-year unsecured notes due April 15, 2030 for net proceeds of $498 million, $550 million 4.60% 7-year unsecured notes due October 15, 2033 for net proceeds of $547 million, $300 million 4.90% 10.5-year unsecured notes due April 15, 2037 for net proceeds of $297 million, and $450 million 5.40% 30-year unsecured notes due October 15, 2056 for net proceeds of $443 million.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
•the impact of cost inflation; and
Previous report — wording carried elsewhere
•an increase in casualty incident costs;
Previous report — wording carried elsewhere
This increase was partially offset by lower acquisition-related and other operating costs across several areas, including intermodal operations, track repair and infrastructure projects, terminal services, crew costs and support, and environmental.
Previous report — wording carried elsewhere
Net cash provided by operating activities increased $191 million in the first six months of 2026, compared to the same period in 2025. The increase was primarily due to higher cash generating operating income and a favourable change in other operating activities.
Previous report — wording carried elsewhere
"Purchased services and other", $5 million recognized in "Net interest expense", and a recovery of $2 million recognized in "Net loss attributable to non-controlling interest", that unfavourably impacted Diluted EPS by 8 cents.